Chapter -5

Trade union II

Functions, Objectives &

Importance
Scope/ functions of trade unions

● Functions performed by trade unions are dynamic not static.

● Functions performed by unions depends upon the
organisational & financial strength of the Union.
● Institutional set up in which the trade unions operate also
influence the functions of the Union.
● Functions are not confined to protecting & improving wages &
conditions of work but it take active interest in all matters in
which the workers are likely to be affected.
Functions of trade union as per trade unions Act 1926
Primary function is to protect &
promote the interest of the
workers.& Working
conditions.other functions
include:
● To secure better wages &
living conditions for the
workers
● To provide self - confidence
and a feeling of identity to the
workers
● To acquire the control of
● To take welfare measures to
improve the morale of the
workers.
● To imbibe sincerity and discipline
in workers
● To minimize the helplessness of
the individual workers by
protecting them against
victimisation & injustice through
collective bargaining.
Functions of trade union & National Commission On Labour.
(NCL)
1. To secure fair wages for workers
2. To improve working & living conditions of the workers
3. To promote identity for the workers
4. To promote individual & collective welfare of workers
5. To enlarge opportunities for promotion and training
6. To safeguard security of tenure and improve conditions of
service of the workers.
7. To broaden understanding & facilitate technological
advancements to workers
8. To provide educational, cultural & recreational facilities
9. To offer responsive Co- operations in improving the levels of
Functions of trade union ( in modern Industrial
countries)
1.Militant functions- these functions are performed by the trade
unions when efforts at collective bargaining fail to bear results.
2.Fraternal functions-it is also known as ministrant or positive
functions.The functions undertaken by a trade union to provide
financial support to the members during strikes , lockouts,or
temporary unemployment .
Classification of fraternal functions
1) Intra-mural functions;: This refers to the welfare scheme which is
carried out within the four walls of the organization.To perform
these functions union adopt the tools like collective bargaining,
group discussions, negotiations,strikes and boycotts etc.
2) Extra- mural functions:; This functions are performed outside the
boundaries of the organization for the general welfare of their
members.These functions depend upon the availability of funds
with the trade unions ,which they arise from members by way of
subscriptions and from outsiders by way of donation.
Political functions
These functions assumes by a trade
unions to acquire political power .It helps
to realize the economic objectives of the
Union through legislation and to
influence the labour policy of the
government.
Functions of trade union from
functional point of view
Relating to Trade union members
● To safeguard the interest of the interest of workers against all sorts
of exploitation.
● Make workers conscious of their rights and duties.
● Remove the dissatisfaction & help in grievance redressal of worker
● To get provision for health, safety and conducive working
conditions for the members by the employer.
● To exert pressure for enhancement of rewards
● Guarantee fair deal & Social justice
● Encourage workers participation in management
● Stress significance of settlement of disputes through variety
means.
Relating to Industrial organization
● To increase the production & productivity of the industry by
laying down the norms of production
● Promote cordial relations between the management & workers
● Help maintain discipline in the organization.
● To convince management to adopt reformative not punitive
apporach towards the default workers
● Create opportunities for WPM
● Promote amicable solution to Industrial conflicts.
● To facilitate communication with the management
● Keep away management from unfair labour practice
Relating to union Organization

● To preserve & strengthen Tarde union democracy

● Improve financial position
● To train & motivate the members to assume leadership positions
● To avoid inter union rivalries & promote solidarity
● To prepare & maintain the necessary records
● To review relevance of union objective in the context of Social change
● To augment communication between union & members
● To save union from the exploitation by vested personal & political
interests.
Functions relating to Society
● To launch campaigns against social evils
● Enable unorganised sector to organise itself
● To help national development by providing constructive Co-
operations in the formulation & implementation of plans &
policies.
● To create favourable opinion about Tarde union in the society.
● To provide assistance & guidance to the government in enacting
legislation.
Need / objectives of Trade union
● To improve the wage & working
conditions & bring positive
economic order.
● Change the the social order by
replacing managerial
dictatorship with Industrial
democracy.
● Raise the status of workers as
citizen of society & industry
● Extend the Social control over
nations economic life
● Protection against economic &
social exploitation
● Overthrow capitalism & bring change in
the Social order.
● Foster a sense of self- respect & dignity
Among workers.
● Strive for securing stable employment
by working against retrenchment of
workers or rationalisation plans.
● Enable the workers to participate in
legislative activities.
● Strive to get a part of increased
productivity in form of bonus.
Techniques To achieve the objectives
1. Collective bargaining Different theories of Trade union
● Classical Theory- trade union
2. Grievance handling
act collectively to protect &
3. Negotiations promote the interest of its
4. Union security members
5. Arbitration ● Neo- classical Theory-trade
6. Recognition of aTrade union involve in numerous
activities that indirectly affect
union
workers
7. Mutual insurance ● Revolutionary theory-bring
8. Political pressure true freedom of the working
class.
Advantages/ importance of Trade union
1. To encourage the Co- operative Feeling
2. To Remove the Grievance of Employees
3. To Secure Better working conditions for
employees
4. To Protect the interest of employees
5. To Work for the progress of employees
6. To provide for employees welfare
Reasons for employees To join Trade union
1. Secure protection from economic
hazards
2. Strengthen bargaining power
3. Safeguard & improve working
conditions
4. Restrain the management from
taking irrational/ discriminatory
action
5. To protect economic,social &
psychological interest
6. Reduce workers dissatisfaction &
overthrow capitalism
7. To get leadership role as office
Bearers.
8. Increase WPM
9. Gain self- respect & status
10. To communicate effectively to the
management.
11. Get a job through the good offices
of trade union
12. To increase efficiency through
better welfare facilities & working
conditions
13. Participate in the formulation of
healthy labour policies & there by
reducing conflict
 Problems of Trade union
Internal Problems
1. Migratory Character External Problems
2. Heterogeneous character
1. Non- Co- operations of
3. Poor economic conditions
intermediaries.
4. Illiterate labour
2. Opposition by Industrialists
5. Ineffective leadership
3. Political pressure
6. Lack of unity
4. Less legal support
7. Low membership
5. Changing Industrial scenario
8. Low standard of life
 Measures to Strengthen Trade union
movement in India
1. Education of workers 6. Co- operations of
2. Economic & Social Industrialists
7. Free from political pressure
upliftment
8. Promotion of welfare
3. Effective leadership
activities
4. Sufficient funds 9. Training for leaders
5. Internal unity 10. Confidence of Public